Analysis of the use of blockchain technologies and smart contracts to automate management processes and ensure sustainability
DOI:
https://doi.org/10.56294/dm2024461Keywords:
Blockchain Efficiency, Process Automation, Smart Contracts, Digital Transformation, Decentralized Management, Supply Chain OptimizationAbstract
Introduction: this paper discusses and analyzes how blockchain technologies and smart contracts apply to automate assurance management processes with sustainability using a perspective model. The increase in demand for systems that are clear and secure in the automation of management processes calls for innovations such as blockchain and smart contracts.
Objective: the objectives of the article are to identify the status of blockchain and smart contract adoption in many management processes; to consider the effect these technologies have on the efficiency, transparency, and sustainability of management operations.
Methodology: we used regression and Markov analysis simulations to analyze the impacts of blockchain technologies on the management processes. The case study data were used to predict the long-term sustainability impacts, and simulations were carried out.
Results: the regression established a positive but substantial effect of the adoption of blockchain technologies on the efficiency of management processes. 75 % of the efficiency score varies with the level of blockchain adoption. Simulations done using the Markov chain also showed that under the highest level of blockchain adoption, there is an effectivity of 90 percent where management processes would have improved and be efficient for the remaining ten years. The simulations also attested that partial adoption still offered a 70 % probability of sustained improvements.
Conclusions: this paper provides strong evidence through regression analysis and Markov simulations showing the influence of these technologies. The ability of organizations to focus on innovative solutions toward sustainable management results is therefore realized
References
1. Omote K, Yano M. Bitcoin and blockchain technology. Blockchain and Crypt Currency. 2020 Apr 15;129:129-36.
2. Shah SS, Shah SA. Trust as a determinant of Social Welfare in the Digital Economy. Social Network Analysis and Mining. [Internet] 2024 Dec [accessed 04/07/2024];14(1):1-27. Available in: https://doi.org/10.1007/s13278-024-01238-5
3. Gui Z, Huang Y, Zhao X. Financial fraud and investor awareness. Journal of Economic Behavior & Organization. [Internet] 2024 Mar 1 [accessed 04/07/2024];219:104-23. Available in: https://doi.org/10.1016/j.jebo.2024.01.006
4. Shah SS, Asghar Z. Dynamics of social influence on consumption choices: A social network representation. Heliyon. [Internet] 2023 Jun 1 [accessed 04/07/2024];9(6). Available in: https://doi.org/10.1016/j.heliyon.2023.e17146
5. Sunyaev A, Sunyaev A. Distributed ledger technology. Internet computing: Principles of distributed systems and emerging internet-based technologies. [Internet] 2020 [accessed 04/07/2024]. Available in: https://doi.org/10.1007/978-3-030-34957-8_9
6. Drummer D, Neumann D. Is code law? Current legal and technical adoption issues and remedies for blockchain-enabled smart contracts. Journal of Information Technology. [Internet] 2020 Dec [accessed 04/07/2024];35(4):337-60. Available in: https://doi.org/10.1177/0268396220924669
7. Helo P, Shamsuzzoha AH. Real-time supply chain—A blockchain architecture for project deliveries. Robotics and Computer-Integrated Manufacturing. [Internet] 2020 Jun 1 [accessed 04/07/2024];63:101909. Available in: https://doi.org/10.1016/j.rcim.2019.101909
8. Lu J, Liang M, Zhang C, Rong D, Guan H, Mazeikaite K, Streimikis J. Assessment of corporate social responsibility by addressing sustainable development goals. Corporate Social Responsibility and Environmental Management. [Internet] 2021 Mar [accessed 04/07/2024];28(2):686-703. Available in: https://doi.org/10.1002/csr.2081
9. Bodkhe U, Tanwar S, Parekh K, Khanpara P, Tyagi S, Kumar N, Alazab M. Blockchain for industry 4.0: A comprehensive review. IEEE Access. [Internet] 2020 Apr 17 [accessed 04/07/2024];8:79764-800. Available in: https://doi.org/10.1109/ACCESS.2020.2988579
10. Tönnissen S, Teuteberg F. Analysing the impact of blockchain-technology for operations and supply chain management: An explanatory model drawn from multiple case studies. International Journal of Information Management. [Internet] 2020 Jun 1 [accessed 04/07/2024];52:101953. Available in: https://doi.org/10.1016/j.ijinfomgt.2019.05.009
11. Vazquez Melendez EI, Bergey P, Smith B. Blockchain technology for supply chain provenance: increasing supply chain efficiency and consumer trust. Supply Chain Management: An International Journal. [Internet] 2024 Mar 12 [accessed 04/07/2024]. Available in: https://doi.org/10.1108/SCM-08-2023-0383
12. Bekrar A, Ait El Cadi A, Todosijevic R, Sarkis J. Digitalizing the closing-of-the-loop for supply chains: A transportation and blockchain perspective. Sustainability. [Internet] 2021 Mar 8 [accessed 04/07/2024];13(5):2895. Available in: https://doi.org/10.3390/su13052895
13. Dutta P, Choi TM, Somani S, Butala R. Blockchain technology in supply chain operations: Applications, challenges and research opportunities. Transportation research part e: Logistics and transportation review. [Internet] 2020 Oct 1 [accessed 04/07/2024];142:102067. Available in: https://doi.org/10.1016/j.tre.2020.102067
14. Muliarevych O. Acceptance and shipping warehouse zones calculation using serverless approach. In2022 12th International Conference on Dependable Systems, Services and Technologies (DESSERT). 2022 Dec 9 [accessed 04/07/2024]: 1-6. IEEE. Available in: https://doi.org/10.1109/DESSERT58054.2022.10018786
15. Wang Y, Singgih M, Wang J, Rit M. Making sense of blockchain technology: How will it transform supply chains? International Journal of Production Economics. [Internet] 2019 May 1 [accessed 04/07/2024];211:221-36. Available in: https://doi.org/10.1016/j.ijpe.2019.02.002
16. Mondol EP. The impact of block chain and smart inventory system on supply chain performance at retail industry. International Journal of Computations, Information and Manufacturing (IJCIM). [Internet] 2021 Dec 19 [accessed 04/07/2024];1(1). Available in: https://doi.org/10.54489/ijcim.v1i1.30
17. Dmitrieva K. Comparative Analysis of Investment Strategies in Technology Sector Ventures. Law, Business and Sustainability Herald. 2022 Nov 25 ;2(4):4-16.
18. Javaid M, Haleem A, Singh RP, Suman R, Khan S. A review of Blockchain Technology applications for financial services. BenchCouncil Transactions on Benchmarks, Standards and Evaluations. [Internet] 2022 Jul 1 [accessed 04/07/2024];2(3):100073. Available in: https://doi.org/10.1016/j.tbench.2022.100073
19. Varma JR. Blockchain in finance. Vikalpa. [Internet] 2019 Mar [accessed 04/07/2024];44(1):1-1. Available in: https://doi.org/10.1177/0256090919839897
20. Roszkowska P. Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments. Journal of Accounting & Organizational Change. [Internet] 2021 Apr 5 [accessed 04/07/2024];17(2):164-96. Available in: https://doi.org/10.1108/JAOC-09-2019-0098
21. Dobrovolska O, Sonntag R, Kachula S, Hubaryk O, Savanchuk T. Financial and investment indicators for accelerating innovation development: Comparison of GII leaders and Ukraine. Invest Manag Financ Innov. [Internet] 2023 [accessed 04/07/2024];20(4):452-466. Available in: http://dx.doi.org/10.21511/imfi.20(4).2023.35
22. Oneshko S. Assessing the profitability of IT companies: International Financial Reporting Standards. Ref. [Internet] 2023 [accessed 04/07/2024];21. Available in: https://refpress.org/ref-vol21-a149/.
23. Centobelli P, Cerchione R, Del Vecchio P, Oropallo E, Secundo G. Blockchain technology design in accounting: Game changer to tackle fraud or technological fairy tale?. Accounting, Auditing & Accountability Journal. [Internet] 2022 Aug 22 [accessed 04/07/2024];35(7):1566-97. Available in: http://dx.doi.org/10.1108/AAAJ-10-2020-4994
24. Parashchuk L, Shelekh Y, Sabat M, Odosii L. Electromechanical system of control and determination of strength of concrete by non-destructive method. In 2023 IEEE 4th KhPI Week on Advanced Technology (KhPIWeek). IEEE; [Internet] 2023 Oct 2 [accessed 04/07/2024]: 1-4.
25. Telnova G, Petchenko M, Tkachenko S, Gurzhy T, Pirogov S. Factors of activation of venture capital investment. FCDPTP [Internet]. 29 April 2022 [accessed 04/07/2024];2(43):46-52. Available in: https://fkd.net.ua/index.php/fkd/article/view/3591
26. Rashid Z, Noor U, Altmann J. Economic model for evaluating the value creation through information sharing within the cybersecurity information sharing ecosystem. Future Generation Computer Systems. [Internet] 2021 Nov 1 [accessed 04/07/2024];124:436-66. Available in: https://doi.org/10.1016/j.future.2021.05.033
27. Sas L, Balaniuk I, Shelenko D, Vasylyuk M, Matkovskyi P, Hnatyshyn L. International Financial Reporting Standards (IFRS) in the accounting system of Ukraine. Financ Credit Act Probl Theory Pract. [Internet] 2023 [accessed 04/07/2024];1(48):78-90. Available in: http://hdl.handle.net/123456789/17365.
28. Hrypynska NV, Dykha MV, Korkuna NM, Tsehelyk HH. Applying dynamic programming method to solving the problem of optimal allocation of funds between projects. Journal of Automation and Information Sciences. [Internet] 2020 [accessed 04/07/2024];52(1).
29. Turjo MD, Khan MM, Kaur M, Zaguia A. Smart supply chain management using the blockchain and smart contract. Scientific Programming. [Internet] 2021 [accessed 04/07/2024];2021(1):6092792. Available in: https://doi.org/10.1155/2021/6092792
30. Shahnaz A, Qamar U, Khalid A. Using blockchain for electronic health records. IEEE access. [Internet] 2019 Oct 9 [accessed 04/07/2024];7:147782-95. Available in: https://doi.org/10.1109/ACCESS.2019.2946373
31. Ratta P, Kaur A, Sharma S, Shabaz M, Dhiman G. Application of blockchain and internet of things in healthcare and medical sector: applications, challenges, and future perspectives. Journal of Food Quality. [Internet] 2021 [accessed 04/07/2024];2021(1):7608296. Available in: https://doi.org/10.1155/2021/7608296
32. Sonkamble RG, Phansalkar SP, Potdar VM, Bongale AM. Survey of interoperability in electronic health records management and proposed blockchain based framework: MyBlockEHR. IEEE Access. [Internet] 2021 Nov 18 [accessed 04/07/2024];9:158367-401. Available in: https://doi.org/10.1109/ACCESS.2021.3129284
33. Komalavalli C, Saxena D, Laroiya C. Overview of blockchain technology concepts. In Handbook of research on blockchain technology. Academic Press; [Internet] 2020 [accessed 04/07/2024]: 349-371. Available in: https://doi.org/10.1016/B978-0-12-819816-2.00014-9
34. Gupta A, Dwivedi DN, Shah J. Artificial Intelligence Applications in Banking and Financial Services. In Future of Business and Finance. Springer; [Internet] 2023 [accessed 04/07/2024]; Available in: https://www.springerprofessional.de/artificial-intelligence-applications-in-banking-and-financial-se/25823646
35. Deeva TV, Nikiporets-Takigawa G, Lustina TN, Podsevalova EN, Didenko EN. Blockchain technologies and smart contracts: New technological methods to regulate transactions and trade operations. Int. J. [Internet] 2020 Jul [accessed 04/07/2024];8:3659-64. Available in: https://doi.org/10.30534/ijeter/2020/125872020
36. Drummer D, Neumann D. Is code law? Current legal and technical adoption issues and remedies for blockchain-enabled smart contracts. Journal of Information Technology. [Internet] 2020 Dec [accessed 04/07/2024];35(4):337-60. Available in: https://doi.org/10.1177/026839622092466
37. Laroiya C, Saxena D, Komalavalli C. Applications of blockchain technology. In Handbook of research on blockchain technology. Academic press; [Internet] 2020 [accessed 04/07/2024]: 213-243.
38. Sayed R. Strategic integration of business analytics in innovation management: Framework for sustainable growth. FSocS [Internet]. 2023 Mar 20 [accessed 04/07/2024];1(1):51-66. Available in: https://futurity-social.com/index.php/journal/article/view/18.
39. Prokopenko O, Järvis M, Prause G, Kara I, Kyrychenko H, Kochubei O, Prokopenko M. Economic features of the use of electric vehicles in delivery services in Estonia. Int J Energy Econ Policy. [Internet] 2022 [accessed 04/07/2024];12(6):340-349. Available in: https://doi.org/10.32479/ijeep.13617.
40. Savytska N, Babenko V, Chmil H, Priadko O, Bubenets I. Digitalization of business development marketing tools in the B2C market. J Inf Technol Manag. [Internet] 2023 [accessed 04/07/2024];15(1):124-134. Available in: https://jitm.ut.ac.ir/article_90740.html.
41. Flechsig C, Anslinger F, Lasch R. Robotic Process Automation in purchasing and supply management: A multiple case study on potentials, barriers, and implementation. Journal of Purchasing and Supply Management. [Internet] 2022 Jan 1 [accessed 04/07/2024];28(1):100718. Available in: https://doi.org/10.1016/j.pursup.2021.100718
42. Sopronenkov I, Zelisko N, Vasylyna V, Lutsenko I, Saienko V. Tax policy: impact on business development and economic dynamics of the country. Econ Aff. [Internet] 2023 [accessed 04/07/2024];68(04):2025-2034. Available in: https://doi.org/10.46852/0424-2513.4.2023.14.
43. Zrybnieva I, Larina K, Semenda O. Sustainable entrepreneurship: analysis of digital marketing trends in the regional and global dimension. FEL [Internet]. 2023 Jun. 25 [accessed 04/07/2024];3(2):150-7. Available in: https://www.futurity-econlaw.com/index.php/FEL/article/view/142
44. Herian R. Smart contracts: a remedial analysis. Information & Communications Technology Law. [Internet] 2021 Jan 2 [accessed 04/07/2024];30(1):17-34. Available in: https://doi.org/10.1080/13600834.2020.1807134
45. Shah SS, Asghar Z. Individual attitudes towards environmentally friendly choices: a comprehensive analysis of the role of legal rules, religion, and confidence in government. Journal of Environmental Studies and Sciences. [Internet] 2024 Apr 2 [accessed 04/07/2024]:1-23. Available in: https://doi.org/10.1007/s13412-024-00913-5
46. Oklander, M., Yashkina, O., Chukurna., Oklander, T., Pandas., Radkevych, L., Sinkovska, V. Economic and mathematical modeling of innovative development of the agglomeration on the basis of information technologies. Journal of Information Technology Management [Internet] 2023 [accessed 04/07/2024]; 15(1): 1-13. Available in: https://doi.org/10.22059/jitm.2023.90723
47. Park A, Li H. The effect of blockchain technology on supply chain sustainability performances. Sustainability. [Internet] 2021 Feb 5 [accessed 04/07/2024];13(4):1726. Available in: 10.3390/su13041726
48. Yuzevych V, Klyuvak O, Skrynkovskyy R. Diagnostics of the system of interaction between the government and business in terms of public e-procurement. Econ Ann-XXI. [Internet] 2016 [accessed 04/07/2024];160:39-44. Available in: 10.21003/ea.V160-08
49. Yemelyanov O, Symak A, Petrushka T, Vovk O, Ivanytska O, Symak D, Havryliak A, Danylovych T, Lesyk L. Criteria, Indicators, and Factors of the Sustainable Energy-Saving Economic Development: The Case of Natural Gas Consumption. Energies. [Internet] 2021 [accessed 04/07/2024]; 14(18):5999. Available in: https://doi.org/10.3390/en14185999
50. Kharazishvili Y, Kwilinski A, Grishnova O, Dzwigol H. Social safety of society for developing countries to meet sustainable development standards: Indicators, level, strategic benchmarks (with calculations based on the case study of Ukraine). Sustainability [Internet] 2020 Oct 28 [accessed 04/07/2024];12(21):8953. Available in: https://doi.org/10.3390/su12218953
51. Shah SS, Serna RJ, Delgado OS. Modelling the influence of social learning on responsible consumption through directed graphs. Electronic Research Archive [Internet] 2023 [accessed 04/07/2024];31(9):5161-206. Available in: https://doi.org/10.3934/era.2023264
52. Shah SS, Shah T. Responsible consumption choices and individual values: an algebraic interactive approach. Mind & Society. [Internet] 2023 Nov [accessed 04/07/2024];22(1):1-32. Available in: https://doi.org/10.1007/s11299-023-00294-2
53. Groschopf W, Dobrovnik M, Herneth C. Smart contracts for sustainable supply chain management: Conceptual frameworks for supply chain maturity evaluation and smart contract sustainability assessment. Frontiers in Blockchain. [Internet] 2021 Apr 9 [accessed 04/07/2024];4:506436. Available in: https://doi.org/10.3389/fbloc.2021.506436
54. Kopyto M, Lechler S, von der Gracht HA, Hartmann E. Potentials of blockchain technology in supply chain management: Long-term judgments of an international expert panel. Technological Forecasting and Social Change. [Internet] 2020 Dec 1 [accessed 04/07/2024];161:120330. Available in: https://doi.org/10.1016/j.techfore.2020.120330
55. Centobelli P, Cerchione R, Del Vecchio P, Oropallo E, Secundo G. Blockchain technology for bridging trust, traceability and transparency in circular supply chain. Information & Management. [Internet] 2022 Nov 1 [accessed 04/07/2024];59(7):103508. Available in: https://doi.org/10.1016/j.im.2021.103508
56. Chang V, Baudier P, Zhang H, Xu Q, Zhang J, Arami M. How Blockchain can impact financial services–The overview, challenges and recommendations from expert interviewees. Technological forecasting and social change. [Internet] 2020 Sep 1 [accessed 04/07/2024];158:120166. Available in: https://doi.org/10.1016/j.techfore.2020.120166
57. Iliev K. Philosophical views on the procedure for regulating the norms of Blockchain technologies in the context of future prospects for the development of the meta-universe. FPH [Internet]. 2022 Mar. 30 [accessed 04/07/2024];1(1):30-41. Available from: https://futurity-philosophy.com/index.php/FPH/article/view/5
Published
Issue
Section
License
Copyright (c) 2024 Valentyn Bannikov, Stanislav Petko, Oleksandr Semenov, Oleksandr Zhurba, Kateryna Lohinova (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
The article is distributed under the Creative Commons Attribution 4.0 License. Unless otherwise stated, associated published material is distributed under the same licence.
